I find it astonishing that people still do not know about or fully understand cryptocurrency or Bitcoin. I still come across many people who believe it is some kind of fad. This notion is popular with some groups of people. The truth is that this notion is even sometimes propagated by governments who don’t like it.
Here, at www.explorefinancialfreedom.com we believe in taking complex ideas and teaching them in a simplified manner so that all people can begin to learn and grow. We believe that Bitcoin will change the world. We want to help people understand Bitcoin better so they can make an informed decision without making assumptions or having preconceived ideas.
Bitcoin was the first cryptocurrency. I would also argue that it is by far the most superior in my opinion. There are many reasons for this and I will explain that in a future article. I want to spend my time talking about why Bitcoin is revolutionizing the world.
Background
The internet has created a global economy like one that we haven’t seen before. We live in a digital age where there is actually a growing possibility of a borderless world. In this increasingly borderless world, how does money become borderless? Governments have been issuing fiat currency for what seems like forever.
Fiat currency is literally money that is a government-issued currency that is not backed by a commodity such as gold. With the increase of technology, it has become feasible to have digital money.
What is Bitcoin?
Bitcoin is a decentralized digital currency, without a Central Bank or even a single administrator. Bitcoin can be exchanged from user to user on a peer-to-peer network without the need for middlemen such as Banks, etc. Bitcoin is truly digital money or an asset with a transparent ledger and no central control. All transactions are verified by the network and recorded in a public ledger called a blockchain.
Why is Bitcoin important?
There are many reasons for this but it allows for each person to have access to money. This might not seem important to people living in the western world where you have credit cards, debit cards or ATM’s but what about the person living in Nigeria or the Congo. Do they have access to money? If you want to give each person the ability to access money then the greatest way to do this is through a digital currency not backed or controlled by any one government.
Blockchain also offers a transparent ledger. The blockchain offers people the freedom to take control of their money through the most transparent mechanism. Banks do not offer this kind of transparency. Give people access to money and you will truly free people!
How could Bitcoin revolutionize the world?
This is where things get interesting. I want to take a step back and talk about history. Capitalism is about property rights. The greatest reallocation of wealth is when property rights are accessible by every individual.
You can see throughout history that Kings, Queens, Dukes, Lords, etc. were the ones with all of the property. They determined what was manufactured, grown, etc. When property rights were accessible to the general public it allowed for the reallocation of wealth through property.
This is why capitalism is so important. Capitalism leads to freedom and the reallocation of wealth.
I am already hearing the arguments for why capitalism has not reallocated wealth. The truth is that it is not the fault of capitalism but of government intervention in the economy that stops this reallocation of the wealth from taking place on a greater scale. Capitalism threatens both the elites and governments. Let capitalism work and you will see a true reallocation of wealth.
Here’s why I bring up property rights. Bitcoin offers property rights to every single human being in the world in the form of digital property. It does this without a banking structure. Property rights reallocate wealth! Bitcoin offers every single human being the ability to access money, have transparency, and rid themselves of the middleman in form of the banking world.
Michael Saylor the CEO of MicroStrategy says that “Bitcoin offers hope” and I would agree. If Bitcoin works it gives every single human property a transparent ledger and no banking structure to restrict them from owning property.
Bitcoin offers people freedom because it is property. That is why Bitcoin offers hope to people.
Over the course of 12 years, Bitcoin has grown tremendously and I believe it will only continue to grow. I think in the years to come Bitcoin will continue to grow. It will have its challenges, but I see a hopeful future.
Bitcoin is revolutionary! I hope that revolution has only just begun!
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